Bahrain lifts ban on company insiders trading
Manama, July 22, 2010
The Bahrain Stock Exchange (BSE) has decided to remove a ban on company insiders trading in their own shares on the stock exchange during a company's close period.
The move means that key members of a company, including directors, senior management and such other persons as decided by the company board, can trade.
At present, they are banned from trading in their own stock for 15 days before they issue quarterly results.
The change is expected to be enforced from October 1.
A company representative appointed by the board will have to maintain and monitor a register which includes basic personal data of key persons and information on their holdings and dealings, and submit it to the BSE.
'The new guidelines allow listed companies to issue the key person dealing policy without BSE's approval taking in consideration that the policy should comply with the requirements of BSE's guidelines,' said director Fouad Rashid
He said the guidelines will reduce administrative burden on issuers of securities and key persons.
The new guidelines are also intended to establish greater transparency at the BSE and ensure a fair environment for the trading of all investors in the market.
Rashid confirmed that the new guidelines permit trading in securities of an issuer throughout the year, given that key persons do not possess or are aware of any inside information that might affect a share's price in the market.
'The new guidelines will require key persons in companies to inform the appointed representative about the details of the dealings conducted for their benefit in the shares and securities in Bahraini market listed on the BSE and other markets by the end of the next business day upon the completion of the dealing.
'The representative must then notify the BSE immediately of such details,' Rashid added.
According to the new guidelines, issuers should maintain a register of key persons containing the basic personal data of key persons of the issuer, their holdings and interests in the issuer, and details regarding their dealings in securities of the issuer.
The register should be updated regularly and a copy should be submitted to the BSE.
The BSE plans to organise a workshop in August for listed companies, licensed brokers and other related parties to explain the details of the new guidelines and the requirements for implementing them. – TradeArabia News Service